Lawsuit challenges surcharge on ratepayers


Substation Relay Protection Training

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$699
Coupon Price:
$599
Reserve Your Seat Today

Connecticut electric surcharge adds a $3.50 monthly fee for utility ratepayers, affecting CL&P now and United Illuminating later, as a State Supreme Court legal challenge in Hartford contests authority, exemptions, and impacts on electric bills.

 

Understanding the Story

A $3.50 monthly tax on Connecticut electric ratepayers, replacing an expired surcharge and under Supreme Court review.

  • Adds $3.50 per month to average household electric bill
  • Applies to CL&P now; United Illuminating later in the year
  • Replaces an expired bond-repayment surcharge from 2010
  • Without it, average CL&P bills drop by about 9-10%

 

State Sen. Joe Markley calls a new surcharge on ratepayers' bills "a sneaky trick played on utility customers," which is why he personally filed a lawsuit challenging its validity.

 

The surcharge, a tax on electric ratepayers, was approved last year by the governor and lawmakers. The tax adds about $3.50 per month to an average household's electric costs on their monthly bill. Connecticut Light & Power customers began paying the additional tax January 1. United Illuminating customers will see the tax appear on their electric bills later this year.

Markley, a Southington Republican, says the tax is illegal. The tax replaces a surcharge that was put in place a decade ago to pay back bonds that were used to reimburse Northeast Utilities for the value of generating plants that the company lost when electric restructuring forced the company out of the generation business amid a broader rate dispute in Connecticut. That surcharge expired at the end of 2010, when the money was paid back.

If the tax had not been added, the average CL&P ratepayer would have seen their electric bills decrease by 9 percent or 10 percent, even though the October snowstorm had the potential to push rates higher.

Markley is getting his day in court, as the case is being heard before the State Supreme Court in Hartford while the attorney general considers market changes.

"The tax is unfair for two reasons," Markley has said. "It is levied by a state agency, which doesn't have the authority to do so, and with utility meters in the legislative spotlight, there are six towns that would be exempt from paying the tax."

The exempt towns are Wallingford, Norwich, Bozrah, Groton, Norwalk and Lebanon.

 

Related News

Related News

Canadian Scientists say power utilities need to adapt to climate change

Canada Power Grid Climate Resilience integrates extreme weather planning, microgrids, battery storage, renewable energy, vegetation…
View more

Schneider Electric Aids in Notre Dame Restoration

Schneider Electric Notre Dame Restoration delivers energy management, automation, and modern electrical infrastructure, boosting safety,…
View more

New Mexico Governor to Sign 100% Clean Electricity Bill ‘As Quickly As Possible’

New Mexico Energy Transition Act advances zero-carbon electricity, mandating public utilities deliver carbon-free electricity by…
View more

New fuel cell could help fix the renewable energy storage problem

Proton Conducting Fuel Cells enable reversible hydrogen energy storage, coupling electrolyzers and fuel cells with…
View more

Invest in Hydropower to Tackle Coronavirus and Climate Crisis Impacts

Hydropower Covid-19 Resilience highlights clean, reliable energy and flexible grid services, with pumped storage, automation,…
View more

Pennsylvania Home to the First 100% Solar, Marriott-Branded U.S. Hotel

Courtyard by Marriott Lancaster Solar Array delivers 100% renewable electricity via photovoltaic panels at Greenfield…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.